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TCS: Currency Volatility Plays Spoilsport

Jul 14, 2017

India's largest software firm, Tata Consultancy Services (TCS) has announced its financial results for the first quarter of FY18. The company has reported a 0.2% QoQ decrease in consolidated sales while the consolidated net profit was up 1.7% QoQ.

Performance Summary

Revenues decreased by 0.2% QoQ in 1QFY18 in rupee terms. Revenues increased by 2% QoQ in constant currency terms and by 3.1% QoQ in US dollar terms. Volumes were up by 3.5% QoQ.

The operating margin was under a bit of pressure due to wage hikes and the appreciation of the rupee. It was down sequentially to 25.1% 1QFY18. The operating profit decreased by 8.8% QoQ.

The other income decreased by 3.8% QoQ and came in at Rs 9,590 million for the quarter.

The net profit for the quarter came in at Rs 60,980 million, up 1.7% QoQ. The net margin was 20.6%

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